November 23, 2024
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GNP wants tax rebate from Millinocket

EAST MILLINOCKET – For the second year in a row, Great Northern Paper Inc., the town’s largest taxpayer, is disputing its tax bill and is asking the town for a $1.54 million refund.

The latest tax abatement request, involving GNP’s year 2000 bill, comes while the State Board of Property Tax Review is hearing the 1999 tax dispute case between the town and the paper company. Hearings are also scheduled for July.

The company filed its request for an abatement of its 2000 taxes last week just before the six-month deadline expired. Town assessors have 60 days to respond to the abatement request. Should assessors not respond, the request is automatically considered denied.

“It’s no surprise,” said John Rouleau, chairman of the Board of Selectmen. “I was surprised at the amount they are claiming,” he said.

Lee Bragg, an Augusta attorney representing the town, said he found the company’s latest filing interesting.

“It is interesting that they have filed this request shortly after having reduced their abatement request for 1999 by about $50 million,” he said during a telephone interview on Tuesday. “During the [state] board hearing last month, they [GNP] amended their estimate of value up to about $151 million, but now have submitted an abatement request for 2000 which claims a value of $120 million,” said the town’s attorney.

Brian Stetson, GNP’s spokesman, declined to comment saying it would be inappropriate to do so during the ongoing tax abatement case before the state board.

Great Northern is disputing the more than $211 million value the town placed on all of its properties and equipment in East Millinocket, which includes its paper mill. The company’s 2000 tax bill was $3,574,210.02. The company paid about 80 percent of the taxes raised in East Millinocket last year.

In the abatement request, the company said its value should be reduced by at least $91,742,300, which translates into a $1,548,610 tax refund.

According to information from the Bureau of Taxation, the state listed $239,647,000 as the 1999 value of Great Northern’s properties in East Millinocket.

Figures for 2000 are not available, however, state officials said no significant changes are expected.

“This over-valuation results from, among other things, an assessed valuation that is manifestly wrong,” stated GNP President Eldon Doody in the application.

Last February, the company disputed its 1999 tax bill and asked the town for a $1.4 million tax refund.

Great Northern disputed the more than $204 million value the town placed on all of its properties and equipment in East Millinocket, which includes its paper mill. The company’s 1999 tax bill was more than $3.4 million. The company paid 81.94 percent of the taxes raised in East Millinocket.

In the 1999 abatement request, the company said its value should be reduced by at least $84,125,580, which translated into a $1.4 million tax refund.

Correction: A headline in Wednesday’s city edition incorrectly identified the town from which Great Northern Paper is seeking a tax abatement for the year 2000. GNP is seeking the abatement from East Millinocket.

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